President Obama is an ardent fan of natural-gas-powered vehicles. He's been promoting NG cars and trucks since March 2011, when he delivered a speech at Georgetown University that sent gas futures higher. He has ordered that the federal fleet be entirely hybrid and alternative-fuel vehicles by 2015. Last week his administration finalized a 54.5-mile-per-gallon standard for cars and light trucks by 2025 to spur the development of alternative-fuel vehicles. And in July, the Department of Energy awarded $30 million in research grants to expand the use of NG in vehicles. Still, the road ahead for NG vehicles remains bumpy. Investors should proceed as they would down a rutted dirt lane—with lots of caution.

Diesel trucks and gasoline-powered cars remain far more economical than NG equivalents. This is an obstacle to converting the nation's two million 18-wheelers to alternative fuels. The "Boone Pickens" bill that would have given $5 billion in subsidies to buyers of big NG trucks was passed in the House, but died in the Senate because conservatives said it picked winners and losers—and steeply raised fees on families using NG to heat their homes.

Still, utilities are investing in NG fueling stations.
New Jersey Resourcesnjr 0.5602240896358543%New Jersey Resources Corp.U.S.: NYSEUSD35.9
0.20.5602240896358543%
/Date(1481302393637-0600)/
Volume (Delayed 15m)
:
47725
P/E Ratio
24.110738255033556Market Cap
3073877052.38571
Dividend Yield
2.8392484342379958% Rev. per Employee
1787110More quote details and news »njrinYour ValueYour ChangeShort position
' New Jersey Natural Gas unit is spending $10 million for five to seven of them and predicts a return on equity of 10.5%. Atlanta Gas Light, an
AGL Resources
unit, has a similar program. As for NG vehicle makers, the demand curve is likely to be steady but slow, absent $4-a-gallon-plus gasoline and the rapid proliferation of fueling stations.

-- Jim McTague

Next Week: Preview

Monday 3

Markets are closed in the U.S. and Canada in observance of Labor Day.

Vice President Joe Biden visits Iraq for talks on security and Syria.

Tuesday 4

Auto sales for August should rise at a seasonally adjusted annual rate of 14.2 million units, says Steve Blitz, chief economist, ITG Investment Research. He sees the ISM manufacturing index for the month as marginally weaker.

Thursday 6

The European Central Bank is likely to agree on and detail its prospective asset-purchase program, says Barclays. It is also likely to push for new measures to support bank finance. President Mario Draghi has said the ECB may need to adopt exceptional measures to maintain price stability.

The Bank of England is likely to keep interest rates on hold, Barclays says.

Friday 7

Look for nonfarm payrolls to rise by 100,000 in August, Blitz says. He notes that the number may be distorted by some seasonal factors that made July's number look better, but likely were given back in August. An uptick in the unemployment rate is possible.